Attracting new clients to your hair salon is important BUT retaining your loyal existing ones is even more important. Why? Because of their Lifetime Value to your salon.

Salon customer loyalty

Customer Lifetime Value (CLV) is one of the most important measures of the worth of a hair salon client.

It calculates the expected $$$ you will receive from a loyal salon client over their projected lifetime as a customer.

It’s actually astonishing to see how big the Customer Lifetime Value can be.

Calculate your customer lifetime value?

Salon example:

• Say your average hairstyle is $70.
• A salon client visits five times per year = $350 annual spend
• Add a couple of color services at $70
• Add a couple of retail purchases at $25 each
• Total annual spend for client = $540
• If this client stays with your salon for five years = total $2700 spent with you
• Keep them for 10 years = $5400 gross revenue

BUT there is more!

Great service will bring more referrals.

Future price increases and inflation will increase your income.

Invest in marketing your hair salon

And the benefits of retaining loyal clients go even further. Invest in your hair salon marketing to your existing loyal clients and add more clients who will become loyal:

• Salon referrals will increase
• Average salon spend will go up
• Loyal customers are less price sensitive
• The costs of servicing them are less than new clients
• Complaints are lower
• Profits go up